S&P 500 Futures Dip Slightly as Wall Street Awaits

Traders work on the floor of the New York Stock Exchange (NYSE).

Investors are nearly covering Nvidia, a crucial player in the artificial intelligence sector, to assess the sustainability of the tech and AI request rally. Nvidia has seen a remarkable 159 increase in its stock price in 2024, leading to enterprises about how much further it can rise. crucial points of interest for investors include the delivery timeline for Nvidia’s Blackwell chips and updates on AI demand.

" There’s easily a lot of sanguinity in the request ahead of hereafter’s advertisement," Erin Browne, 

managing director and portfolio director at Pimco, remarked on CNBC’s “Ending Bell” on Tuesday.

Browne stressed that numerous AI-related stocks are presently trading around 10 below their peak situations. She added that Nvidia's valuation could be higher compared to its five-time normal.

" While sanguinity is clearly priced in, there's still implicit for Nvidia to exceed prospects and surprise the request," Browne said.

Nvidia’s forthcoming daily results are "relatively significant," according to Scott Chronert of Citi. 

Equity strategist highlights Nvidia earnings as ‘highly significant’

“There’s no mistrustfulness about Nvidia’s critical part, especially considering its substantial impact on the S&P 500,” the U.S. equity strategist stated on CNBC’s “Squawk on the Street,” representing the company’s strong influence on the exam performance of the broad request indicator. As of June, Nvidia held a 6.6 weight in the S&P 500, according to FactSet.

Chronert also mentioned that further data is necessary to confirm whether there's a sustained boost from AI spending and productivity. 

“The focus won’t be solely on the earnings results, but more on the guidance handed for the future,” he explained. 

Nvidia is listed to release its alternate-quarter earnings for financial time 2025 after the request closes on Wednesday. The company’s stock has soared 159 so far this time.

Nvidia earnings chart.

Retail shocks: Strong full-price sales drive profit gains for two retailers

Despite widespread discussions about consumers seeking value, improved full-price sales have driven two major retail earnings surprises this afternoon.

Nordstrom shares are climbing after the company’s earnings exceeded expectations by 25 cents. The retailer's gross margin outperformed Wall Street's projections, thanks to "strong regular price sales." Nordstrom also highlighted that categories such as activewear, women’s apparel, beauty, and kids' products saw the strongest growth compared to 2023.

Similarly, PVH, the parent company of Tommy Hilfiger and Calvin Klein, posted an earnings beat of 72 cents. CEO Stefan Larsson attributed the "significant gross margin expansion" to "increased full-price selling and fewer end-of-season clearance sales."

Piper Sandler advises investors to remain vigilant

Although trading volume is expected to be light this week, investors should remain vigilant as key earnings reports are anticipated, according to Piper Sandler.

"With the Labor Day weekend approaching, trading volume may be low, but several important earnings releases could still trigger market volatility," the investment firm noted in a report on Tuesday.

Nvidia, a leader in artificial intelligence, is set to report its earnings on Wednesday after the market closes. Salesforce and CrowdStrike are also scheduled to release their earnings this week.

Stocks with the most significant after-hours movements

Here are the companies making waves in extended trading:

Nordstrom Shares climbed around 7% after the retailer’s second-quarter earnings exceeded analysts’ expectations. The company reported adjusted earnings of 96 cents per share, surpassing the consensus forecast of 71 cents per share, according to LSEG. However, revenue came in at $3.89 billion, slightly below the estimated $3.90 billion.

Ambarella The semiconductor developer saw its stock soar 20% after issuing positive revenue guidance for the fiscal third quarter. Ambarella anticipates third-quarter revenue between $77 million and $81 million, surpassing analysts’ expectations of $69 million, as polled by LSEG. The company also outperformed in both revenue and earnings in the second quarter.

Box The cloud storage company gained 4.3% following a strong second-quarter performance, beating both revenue and earnings estimates. Box reported adjusted earnings of 44 cents per share on $270 million in revenue, above analysts’ predictions of 40 cents per share and $269 million in revenue.

Stock futures remain flat on Tuesday

U.S. stock futures floated near the flatline on Tuesday night.

Futures linked to the Dow Jones Industrial Average edged slightly advanced, while S&P 500 and Nasdaq 100 futures dipped by lower than 0.1.%